Guggenheim Investments, an asset management firm with over $230 billion under management, has valued bitcoin at $400,000 based on fundamental analysis. Guggenheim wanted to invest in bitcoin when the price of the cryptocurrency was at the $10,000 level. The company is currently waiting for approval from the U.S. Securities and Exchange Commission (SEC) to start investing in bitcoin.
Guggenheim Forecasts $400K Bitcoin, Regulation Delays Investments
Guggenheim Global Chief Investment Officer Scott Minerd talked about bitcoinâ€™s valuation on Bloomberg Markets Wednesday as the price of the cryptocurrency continued to soar to another all-time high.
The global asset management and investment advisory division of Guggenheim Partners, Guggenheim Investments has more than $230 billion in assets under management. Recently, the company informed the SEC that it may be investing 10% of its macro fund in bitcoin.
Minerd was asked about Guggenheimâ€™s decision to buy bitcoin and whether the firm has already started purchasing the cryptocurrency. He was also asked how much of the bitcoin buy decision was tied to the Federal Reserve monetary policy. Minerd clarified:
He also revealed that Guggenheim is still waiting for the SEC to greenlight its fund that will invest in bitcoin. â€œWe are not yet effective with the SEC. We are still waiting,â€ he confirmed.
â€œWe made the decision to start allocating towards bitcoin when bitcoin was at $10,000. Itâ€™s a little more challenging with the current price of $20,000. Itâ€™s amazing over a short period of time how big of a run we had,â€ he opined, adding:
â€œEven if we had the ability to do so [invest in bitcoin] today, we are going to monitor the market and see how trading goes, and valuation. But ultimately, we are going to buy it,â€ Minard emphasized.
Regarding his $400,000 price prediction for BTC, Minerd was further asked: â€œHow do you frame a $400,000 bitcoin, how do you get from where we are now up to $400,000? Is it just based on scarcity?â€
The Guggenheim chief investment officer answed, â€œYes,â€ elaborating:
Guggenheim informed the SEC on Nov. 27 that its â€œMacro Opportunities Fund may seek investment exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (GBTC).â€
What do you think about Guggenheimâ€™s bitcoin price prediction? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.